Logitech Reports 5% Net Sales Increase to $1.15 Billion in Q1 FY 2026

Logitech International S.A. reported a net sales increase of 5% for the first quarter of fiscal year 2026, ending June 30, 2025, with total revenues reaching $1.15 billion compared to $1.09 billion in the same period last year. The company's gross profit also saw a modest rise, reaching $479.0 million, resulting in a gross margin of 41.7%, down from 42.8% a year earlier. This decline in gross margin was attributed to increased tariffs, higher promotional spending, and a prior year release in inventory reserves, although it was partially offset by price increases in North America and reductions in product costs.

Operating expenses for the quarter totaled $316.9 million, representing 27.6% of sales, a slight decrease from 28.7% in the previous year. The company maintained its marketing and selling expenses at $195.8 million, while research and development costs remained stable at $74.6 million. General and administrative expenses increased to $41.8 million, primarily due to higher performance-based stock compensation. Logitech's operating income rose to $162.1 million, up from $153.5 million in the prior year, contributing to a net income of $146.0 million, compared to $141.8 million a year earlier.

In terms of strategic developments, Logitech has continued to focus on product innovation and market expansion. The company reported significant sales growth in the Asia Pacific and EMEA regions, with increases of 16% and 12%, respectively, while sales in the Americas decreased by 5%. The growth in the Asia Pacific region was driven by strong demand for gaming and tablet accessories, while the EMEA region benefited from increased sales in video collaboration and keyboards. Logitech's product categories, including video collaboration and webcams, saw notable sales increases of 13% and 16%, respectively.

Logitech's balance sheet as of June 30, 2025, showed total assets of $3.74 billion, up from $3.54 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $1.49 billion, slightly down from $1.50 billion. Accounts receivable increased significantly to $636.5 million, reflecting higher sales and timing of sales within the quarter. The company also maintained a strong liquidity position with a revolving credit facility of up to $750 million, which remains undrawn as of the reporting date.

Looking ahead, Logitech anticipates continued challenges from macroeconomic conditions, including inflation and fluctuating currency exchange rates, which may impact demand and pricing. The company is committed to mitigating these challenges through diversification of its manufacturing footprint, disciplined operating expenses, and ongoing investments in product development. Logitech's management remains optimistic about leveraging long-term trends in AI and new working environments to drive future growth, while also planning to target share repurchases of $2 billion over the next three years, subject to market conditions.